Representatives from the Chinese side say they think it likely that Chinese President Xi Jinping will attend the G-20 meeting later this month. But in order to reach a trade...China Economyread more
Software engineers straight out of college often make six-figure salaries, not counting equity compensation.Technologyread more
Wall Street, though, is clamoring for a rate cut, with an 85% chance of a move in July and a 61% probability of three reductions by year's end.The Fedread more
A company spokesperson said the outage was the result of a "an internal technology issue" and was not security related.Retailread more
The flattening of the yield curve is exuding a bad omen for the stock market if history is any guide.Marketsread more
Using MIT's living wage calculator, CNBC Make It mapped out the minimum amount a single parent must earn to meet their basic needs without relying on outside help in every...Earnread more
Hong Kong Chief Executive Carrie Lam announced at a press conference on Saturday that a contentious bill to allow extraditions to mainland China has been put on hold.China Politicsread more
Stratolaunch, the world's largest airplane, which flew once, is up for sale, sources familiar told CNBC.Investing in Spaceread more
Transparency is key… or is it? With the first-ever non-transparent, actively managed exchange-traded fund receiving approval from the SEC, "ETF Edge" goes straight to the...ETF Edgeread more
Mired in a crisis over its best-selling 737 Max plane, Boeing could hand the spotlight over to its rival Airbus at the Paris Air Show.Airlinesread more
A new update to the Apple Watch called watchOS 6 will notify you if the environment you're in is too loud and could damage your hearing.Technologyread more
If there's one thing Wall Street hates its surprises. And it just got a dilly.
According to a string of news reports, one of China's high-yield trust investment products appears set to default -- for the first time, ever.
"Until the last 24 hours, no one was really focused on the issue," Cramer noted.
However, on Thursday "the Street decided collectively that it can reverberate into every company that has any exposure to China, as far ranging as Ford and Coach and Boeing and Goldman Sachs. " As a result all the major averages finished sharply lower.
"It's the first crisis of the year," Cramer said. And in typical Wall Street fashion, pros are going into 'sell first and ask questions later' mode.
out of Beijing did little to assuage overseas concerns. It showed activity in China's factory sector contracted in January for the first time in 6 months.
Of course Cramer understands the seriousness of the situation. "We have a bank potentially being allowed to go under," as well as deteriorating economic signals, he noted. "There could be serious implications."
But largely Cramer thinks the Street is overreacting.
"China has a habit of pleasantly surprising us just when you think that they're about to jump off a cliff without a net," Cramer noted.
But more important, Cramer doesn't see developments in China having any serious impact on the US.
"Yes, China is important to the global economy, but it's still not nearly as important as the United States, and the US remains strong," he said."One look at the robust existing home sales figure and the very good jobless claims number we got this morning tells you all you need to know about that. Neither housing nor employment here in America should be hurt by China."
Therefore, as China induced panic sweeps across Wall Street in the days ahead, Cramer thinks a shrewd investor should take advantage of the lower prices that go hand in hand with a sell off and put money to work.
Here's how Cramer would proceed.
"Right now, do some homework on the stocks you've wanted to buy but were too expensive," Cramer said. In other words, favorites that had rallied too far too fast.
Determine an attractive entry point and hope that over the next few days panic drives those shares down to your preferred point of entry. If they get there, pull the trigger.
Then, Cramer. says look at stocks which sold off due to fears of contagion but really have little connection to the problem.
"In this case that's domestic regional banks, which have been terrific to-date and have nothing to do with China, but have been brought down by the ETFs that handle the financials. "
After that, look at industrials and determine, which if any, appear to be oversold.
Read More from Mad Money with Jim Cramer
Major market changes happening overnight
Do you need a stiff drink?
10 themes developing in the market right now
That's the way Cramer would approach this crisis – with a cool head and a clear strategy. "Again, no need to rush into anything," Cramer said. "But get ready to move. I think you're looking at an opportunity to buy your favorite stocks at much lower prices than we've had for some time now."
Call Cramer: 1-800-743-CNBC
Questions for Cramer? email@example.com
Questions, comments, suggestions for the "Mad Money" website? firstname.lastname@example.org